(a) a fixed - term State/Territory petroleum production title has been granted by a State or the Northern Territory on the basis that an area (the relevant area ) is within the coastal waters of the State or Territory; and
(b) as a result of a change to the boundary of the coastal waters of the State or Territory, the relevant area:
(i) ceases to be within the coastal waters of the State or Territory; and
(ii) falls within the offshore area of the State or Territory; and
(i) the conditions set out in subsection (2) are satisfied; or
(ii) the conditions set out in subsection (3) are satisfied; and
(d) there are one or more section 33 blocks (the relevant section 33 blocks ) that:
(i) correspond to the section 33 blocks that were covered by the fixed - term State/Territory petroleum production title immediately before the change; and
(ii) are in the offshore area of the State or Territory; and
(iii) are not the subject of a variation under section 267A.
(2) The conditions mentioned in subparagraph (1)(c)(i) are:
(a) one or more, but not all, of the section 33 blocks that were covered by the fixed - term State/Territory petroleum production title immediately before the change are in the relevant area; and
(b) the title subsequently ceases to be in force at the same time (the relevant time ):
(i) as to all of the section 33 blocks that were covered by the title immediately before the change and that are in the coastal waters of the State or Territory; and
(ii) otherwise than as the result of the cancellation or surrender of the title.
(3) The conditions mentioned in subparagraph (1)(c)(ii) are:
(a) all of the section 33 blocks that were covered by the fixed - term State/Territory petroleum production title immediately before the change are in the relevant area; and
(b) the title subsequently ceases to be in force at the same time (the relevant time ):
(i) as to all of the section 33 blocks that were covered by the title immediately before the change; and
(ii) otherwise than as the result of the cancellation or surrender of the title.
(4) The Joint Authority is taken:
(a) to have granted the holder of the fixed - term State/Territory petroleum production title a petroleum production licence over the relevant section 33 blocks; and
(b) to have done so immediately after the relevant time mentioned in whichever of subsection (2) or (3) is applicable.
Note: For the duration of the petroleum production licence, see item 5 of the table in subsection 165(1).
(5) If, after the change to the boundary of the coastal waters of the State or Territory:
(a) a part of a section 33 block that was covered by the fixed - term State/Territory petroleum production title immediately before the change is in the coastal waters of the State or Territory; and
(b) the remaining part of the section 33 block is in the offshore area of the State or Territory;
then, for the purposes of this section (other than this subsection), each of those parts is taken to constitute, and to have always constituted, a section 33 block.
" section 33 block" means:
(a) a block constituted as provided by section 33; or
(b) if a graticular section is wholly within the area that was covered by the fixed - term State/Territory petroleum production title--the graticular section; or
(c) if a part only of a graticular section is within the area that was covered by the fixed - term State/Territory petroleum production title--that part of the graticular section.
Note: See also subsection (5).